Market Research Essay

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1. Explain what Market research is. (2 Marks) Market research is the process of gathering valuable information to facilitate an assessment of whether there is a market for any proposed product or service, with consideration of different demographics. It is utilized to establish an understanding of the various portions of the population which are likely to purchase the product, based on age, gender, location, income level, and several other variables. Based on market research findings, businesses can develop "target audiences," which are specific groups of customers that have distinct needs or desires for the product or service. The research can be used to determine many things such as; how frequent the target audience will purchase a particular item, how much money they are willing to pay for it, and what is their overall satisfaction from it. Upon analyzing this information, manufacturers and service providers can get a clear picture of where to focus their efforts and resources most effectively. The information acquired from market research assists budding entrepreneurs into making wise and profitable business decisions. 2. Explain why business would do market research. What information would they hope to find out? (4 Marks) Successful businesses carry out researches on a continuous basis to gauge the market trends and to maintain a competitive edge by implementing appropriate measures. Regardless of whether a business is at an initial stage or expanding, market research is considered to be a compulsory activity that provides a better understanding of the targeted market as well as increasing product sales. Businesses conduct research for a variety of reasons: Identify potential customers: Which type of people are mos... ... middle of paper ... ...rmation. The information in some cases is so valuable than one can imagine. In many cases, we like to believe so positively about our idea and we think nothing can possibly go wrong and that we are conducting the market research to simply fine tune our idea but then it turns out the to be the opposite. Hence, to those whom market research may be of the most value are those entrepreneurs who after the research, decided not to get into that particular business or product line because the research indicated that there was not a viable market to make the business profitable or there was too much competition in a limited market. However, sometimes a business could be successful without conducting market research although it’s very unlikely. Therefore, for a business to succeed it is crucial to conduct a market research to facilitate appropriate feasibility evaluation.
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